Correlation Between Nasdaq-100(r) and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100(r) and Fidelity Advisor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nasdaq-100(r) and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 2x Strategy and Fidelity Advisor Gold, you can compare the effects of market volatilities on Nasdaq-100(r) and Fidelity Advisor and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Nasdaq-100(r) with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100(r) and Fidelity Advisor.
Diversification Opportunities for Nasdaq-100(r) and Fidelity Advisor
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nasdaq-100(r) and Fidelity is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Fidelity Advisor Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Gold and Nasdaq-100(r) is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Nasdaq 100 2x Strategy are associated (or correlated) with Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Gold has no effect on the direction of Nasdaq-100(r) i.e., Nasdaq-100(r) and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Nasdaq-100(r) and Fidelity Advisor
Assuming the 90 days horizon Nasdaq 100 2x Strategy is expected to generate 1.43 times more return on investment than Fidelity Advisor. However, Nasdaq-100(r) is 1.43 times more volatile than Fidelity Advisor Gold. It trades about 0.02 of its potential returns per unit of risk. Fidelity Advisor Gold is currently generating about -0.05 per unit of risk. If you would invest 40,563 in Nasdaq 100 2x Strategy on October 29, 2024 and sell it today you would earn a total of 732.00 from holding Nasdaq 100 2x Strategy or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Fidelity Advisor Gold
Performance |
| Timeline |
| Nasdaq 100 2x |
| Fidelity Advisor Gold |
Nasdaq-100(r) and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100(r) and Fidelity Advisor
The main advantage of trading using opposite Nasdaq-100(r) and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100(r) position performs unexpectedly, Fidelity Advisor can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.| Nasdaq-100(r) vs. Environment And Alternative | Nasdaq-100(r) vs. Alpsalerian Energy Infrastructure | Nasdaq-100(r) vs. Salient Mlp Energy | Nasdaq-100(r) vs. World Energy Fund |
| Fidelity Advisor vs. T Rowe Price | Fidelity Advisor vs. Artisan High Income | Fidelity Advisor vs. Ab Bond Inflation | Fidelity Advisor vs. Dreyfusstandish Global Fixed |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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